City of Lafayette Cannabis/Marijuana Surety Bond
What is a City of Lafayette Cannabis Bond?
Essentially, a surety bond must first be secured by all seeking to conduct a cannabis/marijuana business in the City of Lafayette. This would ensure that the state or municipality is protected in the event that the licensing applicant engages in illegal activities. Controlling, regulating, and taxing such businesses would also guarantee the protection of the state's residents' safety, health, and welfare.
Who are the parties involved in a City of Lafayette Cannabis/Marijuana Surety Bond?
A City of Lafayette cannabis bond has three parties:
Principal – the surety bond applicant
Obligee – the state or municipality requiring the surety bond
Surety – the surety bond provider
The Principal shall abide by all applicable state laws as well as the terms of the license under the terms of this bond. The Surety would guarantee that the Principal will fulfill all of the responsibilities to the Obligee (the bond's beneficiary).
If this is not the case, the Obligee has the right to file a claim against the bond. The Surety would first look at the claim's validity. The Principal must reimburse the Surety for the full amount after the Surety has paid the Obligee.
What is the cost for a City of Lafayette Cannabis/Marijuana Surety Bond?
The cost to the customer is known as the ‘bond premium’, and this will depend on the applicant’s credit score. Bond premiums range from 1% up to 5% of the bond amount.
You can check out your bond premium by getting your FREE SURETY BOND QUOTE HERE
How do you obtain a City of Lafayette Cannabis/Marijuana Surety Bond?
The first thing that you should do is to apply for this bond which you can easily do HERE!
Your application will be processed as soon as we receive it and one of our experienced surety bond agents will contact you on the next steps that you’ll have to do. Don’t worry, you will be guided throughout the whole process!
An underwriter will assess the following during:
- Your financial strength
- Your credit score
- Your job/business performance history
Once all of those are done, you’ll be asked to sign an indemnity agreement. Then the bond will be issued and sent to you right away!